Exhibit 99.1
City National Corporation Reports Record First-Quarter 2005 Earnings
of $55.5 Million or $1.09 Per Share;
Net Income and Earnings Per Share Both Increase 9 Percent
LOS ANGELES--(BUSINESS WIRE)--April 20, 2005--City National
Corporation (NYSE:CYN), parent company of wholly owned City National
Bank, today reported net income of $55.5 million, or $1.09 per share,
for the first quarter of 2005 compared with $50.9 million, or $1.00
per share, for the first quarter of 2004.
HIGHLIGHTS
-- Revenue for the first quarter of 2005 rose 11 percent over the
same period a year ago and 5 percent over the fourth quarter
of 2004.
-- The net interest margin of 4.75 percent at March 31, 2005
represents a 21-basis-point increase over the December 31,
2004 net interest margin of 4.54 percent, and a 9-basis- point
increase over the March 31, 2004 net interest margin of 4.66
percent.
-- No provision for credit losses was recorded for the seventh
consecutive quarter, a result of continued strong credit
quality and an adequate current level of allowance for credit
losses. Nonaccrual loans as of March 31, 2005 were $29.9
million, down 30 percent from March 31, 2004 and 14 percent
from December 31, 2004.
-- Average deposits and average core deposits were both up 10
percent for the first quarter of 2005 from the first quarter a
year ago due to continued bank-wide growth. Average core
deposits represented 92 percent of the total average deposit
base for the first quarter of 2005.
-- First-quarter average loans increased 9 percent from the same
period last year to $8.6 billion.
-- Average securities for the first quarter of 2005 were up 19
percent from the same period a year ago as deposit growth
outpaced loan growth in 2004.
"City National's strong first-quarter results reflect double-digit
increases in revenue, deposits and wealth management fees, and
meaningful growth in loans and our net interest margin. Further
improvements in our strong credit quality, the absence of a provision
for loan losses and a good economy in California were also significant
factors in our organization's success this quarter," said Chief
Executive Officer Russell Goldsmith.
For the
Dollars in millions, For the three months
except per share three months ended % ended %
March 31, Change December Change
2005 2004 31, 2004
- ----------------------- ---------- ---------- ------ ---------- ------
Earnings Per Share $1.09 $1.00 9 $0.97 12
Net Income 55.5 50.9 9 49.7 12
Average Assets 13,873.4 12,617.3 10 14,120.5 (2)
Return on Average
Assets 1.62 % 1.62 % 0 1.40 % 16
Return on Average
Equity 16.63 16.75 (1) 14.87 12
The bank's prime rate was 5.75 percent as of March 31, 2005, an
increase of 175 basis points over the same period last year.
ASSETS
Total assets at March 31, 2005 increased 5 percent to $13.9
billion from $13.2 billion at March 31, 2004, and decreased 2 percent
from $14.2 billion at December 31, 2004 due to the runoff of federal
funds sold as a result of the seasonal decline in deposits in the
first quarter. Average assets for the first quarter of 2005 were
higher than the first quarter of 2004, primarily due to an increase in
average securities and loans.
REVENUE
Revenue (net interest income plus noninterest income) for the
first quarter of 2005 increased 11 percent to $196.8 million compared
with $177.5 million for the first quarter of 2004 due to higher net
interest income and wealth management fees. Revenue was up 5 percent
from the fourth quarter of 2004.
NET INTEREST INCOME
Fully taxable-equivalent net interest income reached $149.9
million in the first quarter of 2005, up 12 percent from $134.3
million for the same period last year. Compared to the fourth quarter
of 2004, fully taxable-equivalent net interest income grew 1 percent
from $148.8 million. The net interest margin was 9 basis points higher
than the first quarter of 2004 and 21 basis points higher than the
fourth quarter of 2004. Both higher yields and higher average
interest-earning assets contributed to the increases in net interest
income and the net interest margin from the same period last year.
Higher yields are responsible for the increases from the fourth
quarter of 2004.
For the
For the three months
three months ended % ended %
Dollars in millions March 31, Change December Change
2005 2004 31, 2004
- ----------------------- ---------- ---------- ------ ---------- ------
Average Loans $8,585.2 $7,886.3 9 $8,356.6 3
Average Securities 4,115.4 3,462.5 19 4,012.2 3
Average Earning Assets 12,798.5 11,601.9 10 13,039.6 (2)
Average Deposits 11,572.4 10,533.5 10 11,938.7 (3)
Average Core Deposits 10,628.3 9,621.2 10 11,074.4 (4)
Fully Taxable-Equivalent
Net Interest Income 149.9 134.3 12 148.8 1
Net Interest Margin 4.75 % 4.66 % 2 4.54 % 5
Compared with the prior-year first-quarter averages, residential
mortgage loans rose 17 percent, real estate construction loans rose 22
percent, commercial real estate mortgage loans rose 4 percent and
commercial loans increased 2 percent. Compared with the prior quarter,
average loans increased in all categories except installment loans.
Period-end March 31, 2005 loans increased $91.3 million from
December 31, 2004, reflecting growth in commercial lending and most
real estate-related loan categories.
Deposits at March 31, 2005 were $224.3 million, or 2 percent,
lower than at December 31, 2004 due to seasonal runoff and the
variability of our specialty deposit business.
The company's "plain-vanilla" interest rate swaps, which are part
of its long-standing asset-liability management strategy of hedging
loans, deposits and borrowings, were $1.4 billion in notional value at
March 31, 2005, which increased $0.3 billion and $0.1 billion,
respectively, from the notional value at March 31, 2004 and December
31, 2004.
NONINTEREST INCOME
First-quarter 2005 noninterest income was 8 percent higher than
the first quarter of 2004 due primarily to higher wealth management
income. As a percentage of total revenue, noninterest income was 26
percent for both the first quarters of 2005 and 2004, and 22 percent
for the fourth quarter of 2004.
Wealth Management
Trust and investment fees increased 25 percent over the first
quarter of 2004 primarily due to higher balances under management or
administration. Assets under management at March 31, 2005 increased 14
percent from the same period last year primarily due to new business,
strong relative investment performance and higher market values.
Increases in market values are reflected in fee income primarily on a
trailing-quarter basis.
At or for the
At or for the three months
three months ended % ended %
Dollars in millions March 31, Change December Change
2005 2004 31, 2004
- ------------------------- --------- --------- ------ --------- ------
Trust and Investment Fee
Revenue $19.4 $15.6 25 $19.3 1
Brokerage and Mutual Fund
Fees 9.9 8.7 13 9.9 0
Assets Under Management
(1) 16,378.8 14,339.3 14 16,185.2 1
Assets Under
Administration 35,829.2 30,532.3 17 35,092.7 2
(1) Excludes $6,071, $3,591, and $4,227 million of assets under
management for the CCM minority-owned asset managers as of March 31,
2005, March 31, 2004, and December 31, 2004, respectively
Other Noninterest Income
Cash management and deposit transaction fees for the first quarter
of 2005 decreased 19 percent from the same period last year. Compared
with the fourth quarter of 2004, first-quarter 2005 cash management
and deposit transaction fees were essentially unchanged. Higher
average deposit balances and a higher earnings credit rate contributed
to the variance from the first quarter of last year.
International service fees for the first quarter of 2005 fell 5
percent from the prior-year quarter and 10 percent from the fourth
quarter of 2004 primarily due to pricing pressures.
Other income for the first quarter of 2005 was 32 percent higher
than the first quarter of 2004 and 16 percent higher than the fourth
quarter of 2004 primarily due to higher participating mortgage loan
fees.
For the first quarter of 2005, the company recorded $0.3 million
in gains on the sale of assets and securities, compared to $0.6
million in gains for the first quarter of 2004 and $7.7 million in
losses for the fourth quarter of 2004. As previously disclosed,
results for the fourth quarter of 2004 included an $8.2 million
non-cash charge on certain perpetual fixed-rate preferred securities
issued by government-sponsored entities.
NONINTEREST EXPENSE
First-quarter 2005 noninterest expense of $106.5 million was up 13
percent from $94.5 million for the first quarter of 2004, but down 1
percent from $107.5 million from the fourth quarter of 2004. The
year-over-year increase was primarily related to higher staffing
costs.
Staffing expenses were 12 percent higher in the first quarter of
2005 compared with the first quarter of 2004 due to hiring of new
colleagues as well as higher commissions and bonuses. Staffing
expenses increased 9 percent over the fourth quarter of 2004 primarily
due to higher commissions paid and seasonally higher payroll taxes.
Professional fees for the first quarter of 2005 increased $2.6
million, or 43 percent, from the first quarter of 2004 for expenses
related to compliance with the Sarbanes-Oxley Act, the Bank Secrecy
Act, and the USA Patriot Act. Professional fees were down $2.6
million, or 23 percent, from the fourth quarter of 2004.
As previously disclosed, City National Bank entered into a consent
agreement with the Office of the Comptroller of the Currency on
February 23, 2005 in connection with compliance with the Bank Secrecy
Act and the USA Patriot Act, and paid a monetary assessment of
$750,000 in the first quarter.
For the first quarter of 2005, the efficiency ratio was 54.10
percent compared with 53.39 percent for the first quarter of 2004, and
56.69 percent for the fourth quarter of 2004.
INCOME TAXES
The first-quarter 2005 effective tax rate was 37.3 percent,
compared with 37.4 percent for all of 2004. As previously reported,
the California Franchise Tax Board has taken the position that certain
real estate investment trust and registered investment company tax
deductions shall be disallowed under California law adopted in the
fourth quarter of 2003. While management continues to believe that the
tax benefits realized in previous years were appropriate, the company
deemed it prudent to participate in the statutory Voluntary Compliance
Initiative-Option 2, requiring payment of all California taxes and
interest on the disputed 2000-through- 2002 tax years, and permitting
the company to claim a refund for these years while avoiding certain
potential penalties. The company's strategic and financial positions
remain unchanged from the previously reported period. The company's
receivable related to the disputed taxes is $23.7 million, net of
previously established reserves.
CREDIT QUALITY
The company, for the seventh consecutive quarter, made no
provision for credit losses in the first three months of 2005. This
was attributable to the continued strong credit quality of its
portfolio, low level of net charge-offs, management's ongoing
assessment of the credit quality of the portfolio, modest loan growth
and an improving economic environment. Nonaccrual loans as of March
31, 2005 were $29.9 million, down 30 percent from March 31, 2004 and
14 percent from December 31, 2004.
At March 31, 2005, the allowance for loan losses was $147.6
million or 1.72 percent of outstanding loans. The reserve for unfunded
credit commitments was $12.9 million.
At or for the
At or for the three months
Dollars in millions three months ended ended
March 31, % December 31, %
2005 2004 Change 2004 Change
- ---------------------------- -------- -------- ------ --------- ------
Provision For Credit Losses $- $- N/M $- N/M
Net Loan Recoveries/(Charge-
Offs) 0.2 (0.9) 125 - N/M
Annualized Percentage of
Recoveries/
(Charge-offs) to Average
Loans 0.01 % (0.05)% 120 - N/M
Nonperforming Assets $29.9 $42.7 (30) $34.6 (14)
Percentage of Nonaccrual
Loans and ORE to Total Loans
and ORE 0.35 % 0.54 % (35) 0.41 % (15)
Allowance for Loan Losses $147.6 $154.5 (4) $148.6 (1)
Reserve for Off-Balance
Sheet Credit Commitments $12.9 $10.6 22 $11.8 10
Percentage of Allowance for
Loan Losses to Outstanding
Loans 1.72 % 1.94 % (11) 1.75 % (2)
Percentage of Allowance for
Loan Losses to Nonaccrual
Loans 493.37 361.54 36 428.92 15
OUTLOOK
Based on current economic conditions and business indicators,
management continues to expect the growth of earnings per share for
2005 to be approximately 11 percent to 14 percent higher than earnings
per share for 2004.
CAPITAL LEVELS
Total risk-based capital and Tier 1 risk-based capital ratios at
March 31, 2005 were 15.27 percent and 11.69 percent, compared with the
minimum "well capitalized" capital ratios of 10 percent and 6 percent,
respectively. The company's Tier 1 leverage ratio at March 31, 2005
was 8.12 percent. Total risk-based capital, Tier 1 risk-based capital
and the Tier 1 leverage ratios at December 31, 2004 were 15.11
percent, 11.51 percent and 7.83 percent, respectively.
Shareholders' equity to assets as of March 31, 2005 was 9.5
percent compared to 9.4 percent as of March 31, 2004 and 9.5 percent
as of December 31, 2004.
The accumulated other comprehensive loss at March 31, 2005 was
$43.3 million compared with income of $32.2 million at March 31, 2004
and a loss of $1.4 million at December 31, 2004. The average duration
of total available-for-sale securities at March 31, 2005 was 3.5 years
compared to 3.0 years at December 31, 2004 and 3.1 years at March 31,
2004.
STOCK OPTIONS
On April 14, 2005 the Securities and Exchange Commission announced
a new rule delaying the implementation of Statement of Financial
Accounting Standards No. 123R, Share-Based Payment. The Commission's
new rule allows companies to implement Statement No. 123R at the start
of their next fiscal year which begins after June 15, 2005. City
National will comply with the requirements of Statement No. 123R as of
January 1, 2006.
STOCK REPURCHASE
During the first quarter of 2005, the company repurchased 495,500
of outstanding shares at an average cost of $69.36. The company has
board authorization to repurchase 514,000 additional shares as of
March 31, 2005. There were 1,334,703 treasury shares at March 31,
2005.
CONFERENCE CALL
City National Corporation will host a conference call this
afternoon to discuss results for the first quarter of 2005. The call
will begin at 2:00 p.m. PDT. Analysts and investors may dial in and
participate in the question/answer session. To access the call, please
dial (866) 800-8652 and enter pass code 59502398. A listen-only live
broadcast of the call also will be available on the investor relations
page of the company's Website at cnb.com. There, it will be archived
and available for 12 months.
ABOUT CITY NATIONAL
City National Corporation is a financial services company with
$13.9 billion in total assets. Its wholly owned subsidiary, City
National Bank, is California's Premier Private and Business Bank(R).
The bank provides banking, investment, and trust services through 52
offices, including 12 full-service regional centers, in Southern
California, the San Francisco Bay Area and New York City. The company
and its affiliates manage or administer more than $35.8 billion in
client trust and investment assets, including more than $16.3 billion
under management.
In 2005, the company will open four new offices in Southern
California.
For more information about City National, visit the company's
Website at cnb.com.
This news release contains forward-looking statements about the
company for which the company claims the protection of the safe harbor
provisions contained in the Private Securities Litigation Reform Act
of 1995.
Forward-looking statements are based on management's knowledge and
belief as of today and include information concerning the company's
possible or assumed future financial condition, and its results of
operations, business and earnings outlook. These forward-looking
statements are subject to risks and uncertainties. A number of
factors, some of which are beyond the company's ability to control or
predict, could cause future results to differ materially from those
contemplated by such forward-looking statements. These factors include
(1) the unknown economic impact of state budget issues, (2) changes in
interest rates, (3) significant changes in banking laws or
regulations, (4) the costs of complying with Anti-Money Laundering and
USA Patriot Act requirements, (5) increased competition in the
company's markets, (6) other-than-expected credit losses due to real
estate cycles or other economic events, (7) earthquake or other
natural disasters affecting the condition of real estate collateral,
(8) the effect of acquisitions and integration of acquired businesses,
and (9) the impact of changes in regulatory, judicial, or legislative
tax treatment of business transactions. Management cannot predict at
this time the extent of the economic recovery, and a slowing or
reversal could adversely affect our performance in a number of ways
including decreased demand for our products and services and increased
credit losses. Likewise, changes in deposit interest rates, among
other things, could slow the rate of growth or put pressure on current
deposit levels. Forward-looking statements speak only as of the date
they are made, and the company does not undertake to update
forward-looking statements to reflect circumstances or events that
occur after the date the statements are made, or to update earnings
guidance including the factors that influence earnings.
For a more complete discussion of these risks and uncertainties,
see the company's Annual Report on Form 10-K for the year-ended
December 31, 2004, and particularly the section of Management's
Discussion and Analysis therein titled "Cautionary Statement for
Purposes of the 'Safe Harbor' Provisions of the Private Securities
Litigation Reform Act of 1995."
CITY NATIONAL CORPORATION
- ----------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (unaudited)
(Dollars in thousands, except per share amount)
- ----------------------------------------------------------------------
March 31, December 31,
-----------------------------------
2005 2004 % Change 2004
------------ ------------ ---------------------
Assets
Cash and due from
banks $386,999 $472,541 (18) $240,492
Federal funds
sold 190,000 519,000 (63) 427,000
Due from banks -
interest bearing 36,982 34,570 7 236,362
Securities 4,056,459 3,651,722 11 4,190,176
Loans (net of
allowance for
loan
losses of
$147,607;
$154,498 and
$148,568) 8,437,856 7,813,141 8 8,345,619
Other assets 809,742 740,124 9 791,864
------------ ------------ ------------
Total assets $13,918,038 $13,231,098 5 $14,231,513
============ ============ ============
Liabilities and
Shareholders' Equity
Noninterest-
bearing deposits $6,069,061 $5,525,627 10 $6,026,428
Interest-bearing
deposits 5,693,563 5,609,050 2 5,960,487
------------ ------------ ------------
Total
deposits 11,762,624 11,134,677 6 11,986,915
Federal funds
purchased and
securities sold
under
repurchase
agreements 155,645 88,063 77 204,654
Other short-term
borrowed funds 125 50,125 (100) 125
Subordinated
debt 280,068 300,758 (7) 288,934
Other long-term
debt 224,829 239,804 (6) 230,416
Reserve for off-
balance sheet
credit
commitments 12,944 10,574 22 11,751
Other liabilities
/ minority
interest 161,620 167,167 (3) 160,183
------------ ------------ ------------
Total
liabilities 12,597,855 11,991,168 5 12,882,978
Shareholders'
equity
Common stock,
paid-in capital,
retained earnings,
treasury shares
and deferred equity
compensation 1,363,471 1,207,693 13 1,349,887
Accumulated
other
comprehensive
income (loss) (43,288) 32,237 (234) (1,352)
------------ ------------ ------------
Total
shareholders'
equity 1,320,183 1,239,930 6 1,348,535
------------ ------------ ------------
Total liabilities
and
shareholders'
equity $13,918,038 $13,231,098 5 $14,231,513
============ ============ ============
Book value per
share $26.97 $25.54 6 $27.39
Number of shares
at period end 48,957,992 48,553,409 1 49,237,756
CONSOLIDATED STATEMENT OF INCOME (unaudited)
(Dollars in thousands, except per share amount)
- -------------------------------------------------------------------
For the three months
ended
March 31,
----------------------------------
2005 2004 % Change
----------- ----------- ----------
Interest income $167,650 $143,797 17
Interest expense (21,224) (12,825) 65
----------- -----------
Net interest income 146,426 130,972 12
Provision for credit losses - - -
----------- -----------
Net interest income after
provision for credit losses 146,426 130,972 12
Noninterest income 50,358 46,570 8
Noninterest expense (106,504) (94,531) 13
Minority interest (1,811) (1,600) 13
----------- -----------
Income before taxes 88,469 81,411 9
Income taxes (33,008) (30,513) 8
----------- -----------
Net income $55,461 $50,898 9
=========== ===========
Net income per share, diluted $1.09 $1.00 9
=========== ===========
Dividends paid per share $0.36 $0.32 13
=========== ===========
Shares used to compute per
share net income, diluted 51,030,470 50,679,109
CITY NATIONAL CORPORATION
- -------------------------------------------------------------------
SELECTED FINANCIAL INFORMATION (unaudited)
(Dollars in thousands)
- -------------------------------------------------------------------
For the three months
ended
March 31,
----------------------------------
2005 2004 % Change
----------- ----------- ----------
Average Balances
Loans
Commercial $3,236,444 $3,172,149 2
Commercial real estate
mortgage 1,876,720 1,807,549 4
Residential mortgage 2,285,759 1,952,305 17
Real estate
construction 829,702 678,479 22
Equity lines of credit 265,417 194,184 37
Installment 91,159 81,667 12
----------- -----------
Total loans $8,585,201 $7,886,333 9
=========== ===========
Securities $4,115,383 $3,462,547 19
Due from banks - interest
bearing 64,917 78,348 (17)
Interest-earning assets 12,798,505 11,601,877 10
Assets 13,873,392 12,617,328 10
Core deposits 10,628,289 9,621,156 10
Deposits 11,572,401 10,533,471 10
Shareholders' equity 1,352,472 1,222,017 11
Noninterest income
Trust and investment
fees $19,437 $15,588 25
Brokerage and mutual
fund fees 9,868 8,726 13
Cash management and
deposit transaction
fees 9,010 11,098 (19)
International services 4,888 5,126 (5)
Bank owned life
insurance 864 831 4
Other 6,013 4,572 32
----------- -----------
Subtotal -
core 50,080 45,941 9
Gain (loss) on sale of
loans and assets/debt
repurchase 23 - N/M
Gain (loss) on sale or
writedown of
securities 255 629 (59)
----------- -----------
Total $50,358 $46,570 8
=========== ===========
Total revenue $196,784 $177,542 11
=========== ===========
Noninterest expense
Salaries and employee
benefits $66,632 $59,676 12
----------- -----------
All Other
Net occupancy of
premises 7,616 7,308 4
Professional 8,714 6,106 43
Information services 5,166 4,522 14
Depreciation 3,615 3,228 12
Marketing and
advertising 3,574 3,507 2
Office services 2,489 2,419 3
Amortization of
intangibles 1,441 1,759 (18)
Equipment 549 765 (28)
Other operating 6,708 5,241 28
----------- -----------
Total all
other 39,872 34,855 14
----------- -----------
Total $106,504 $94,531 13
=========== ===========
Selected Ratios
For the Period
Return on average
assets 1.62 % 1.62 % -
Return on average
shareholders' equity 16.63 16.75 (1)
Efficiency ratio (1) 54.10 53.39 1
Dividend payout ratio 32.02 30.71 4
Period End
Tier 1 risk-based
capital ratio 11.69 10.65 10
Total risk-based
capital ratio 15.27 14.41 6
Tier 1 leverage ratio 8.12 7.60 7
(1) The efficiency ratio is defined as noninterest expense
excluding ORE expense divided by total revenue (net interest income on
a fully tax-equivalent basis and noninterest income).
CITY NATIONAL CORPORATION
- ----------------------------------------------------------------------
SELECTED FINANCIAL INFORMATION (unaudited)
(Dollars in thousands)
- ----------------------------------------------------------------------
Period end March 31, December 31,
------------------------------------
2005 2004 % Change 2004
------------ ------------ ---------- ------------
Loans
Commercial $3,205,776 $3,163,312 1 $3,158,369
Commercial
real estate
mortgage 1,919,788 1,807,591 6 1,892,823
Residential
mortgage 2,323,879 1,977,952 17 2,248,742
Real estate
construction 772,000 741,637 4 847,364
Equity lines
of credit 274,735 197,269 39 255,194
Installment 89,285 79,878 12 91,695
------------ ------------ ------------
Total
loans $8,585,463 $7,967,639 8 $8,494,187
============ ============ ============
Deposits
Noninterest-
bearing $6,069,061 $5,525,627 10 $6,026,428
Interest-
bearing,
core 4,791,619 4,760,018 1 5,027,638
------------ ------------ ------------
Total
core
deposits 10,860,680 10,285,645 6 11,054,066
Time deposits
- $100,000
and over 901,944 849,032 6 932,849
------------ ------------ ------------
Total
deposits $11,762,624 $11,134,677 6 $11,986,915
============ ============ ============
For the three
months ended
March 31,
------------------------------
2005 2004 % Change
--------- --------- ----------
Yields and Rates for the
Period
Loans 5.97 % 5.47 % 9
Securities 4.37 4.58 (5)
Interest-earning
assets 5.42 5.10 6
Interest-bearing
deposits 1.05 0.71 48
Other borrowings 3.53 1.97 79
Total interest
bearing liabilities 1.29 0.83 55
Net interest margin 4.75 4.66 2
March 31, December 31,
------------------------------
2005 2004 % Change 2004
--------- --------- ---------- --------
Credit Quality
Nonaccrual loans and
ORE
Nonaccrual loans $29,918 $42,733 (30) $34,638
ORE - - - -
--------- --------- --------
Total nonaccrual
loans and ORE $29,918 $42,733 (30) $34,638
========= ========= ========
Total nonaccrual loans
and ORE to total
loans and ORE 0.35 0.54 (35) 0.41
Loans past due 90
days or more on
accrual status $807 $5,057 (84) $142
========= ========= ========
For the three
months ended
March 31,
------------------------------
2005 2004 % Change
--------- --------- ----------
Allowance for Loan Losses
Beginning balance $148,568 $156,015 (5)
Provision for credit
losses (1,193) (603) 98
Charge-offs (3,506) (4,349) (19)
Recoveries 3,738 3,435 9
--------- ---------
Net
recoveries/(charge-
offs) 232 (914) 125
--------- ---------
Ending Balance $147,607 $154,498 (4)
========= =========
Reserve for Off-Balance
Sheet Credit Commitments
Beginning balance $11,751 $9,971 18
Provision 1,193 603 98
--------- ---------
Ending Balance $12,944 $10,574 22
========= =========
Total net
recoveries/(charge-offs)
to average loans
(annualized) 0.01 (0.05) 120
Allowance for loan losses
to total loans 1.72 1.94 (11)
Allowance for loan losses
to nonaccrual loans 493.37 361.54 36
CONTACT: City National
Financial/Investors:
Christopher J. Carey, 310-888-6777
Media:
Cary Walker, 213-833-4715